MercoPress. South Atlantic News Agency

Brazil’s trade surplus more than doubles in July over a year ago

Main exports are mineral commodities (iron ore) plus soybeans and meats

Brazil’s trade surplus more than doubled in July from a year ago fuelled by higher commodity prices in spite of the over-valued Super Real that is having an impact on manufactured goods exports and promotes the import of ‘cheap’ products.

According to the Trade Ministry’s website the Brazilian surplus widened to 3.1 billion dollars in July from 1.3 billion a year ago. However the surplus slipped from June’s 4.4 billion in June.

Exports in July rose to 22.3 billion from 17.7 billion a year ago, while imports increased to 19.1 billion from 16.3 billion dollars, the Trade Ministry said

The Brazilian government slapped a 1% tax on currency futures last week as it seeks to contain the appreciation of the Super Real to protect local manufacturers from foreign competition. Higher commodity prices this year offset gains in the currency, helping increase the 12-month trade balance to 27.1 billion, from 17.7 billion a year ago.

The Super Real gained 7.1% in the past six months, the best performer among the seven most-traded Latin American currencies tracked by Bloomberg.

Brazil is a major exporter of food and mineral commodities, including soybeans, beef and iron ore.

In 2010, Brazil's trade surplus dwindled to 20.3 billion from 25.3 billion the previous year as the fastest economic expansion in nearly three decades, coupled with a strong currency, increased demand for imports.